Omron 2004 Annual Report Download - page 52

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The convertible bonds may be redeemed at the Company’s option prior to maturity at any time by the Company or its subsidiaries.
At March 31, 2004, the convertible bonds were redeemable, in whole or in part, at 100% of face value.
The number of contingently issuable shares of common stock related to the convertible bonds as of March 31, 2004 was
10,026,639 shares. The conversion price per share at March 31, 2004 was ¥2,965 ($27.98), subject to anti-dilutive provisions.
As is customary in Japan, additional security must be given if requested by a lending bank, and banks have the right to offset cash
deposited with them against any debt or obligation that becomes due and, in case of default and certain other specified events, against
all debt payable to the banks. The Companies have never received any such requests.
As is customary in Japan, the Company and domestic subsidiaries maintain deposit balances with banks with which they have short-
or long-term borrowings. Such deposit balances are not legally or contractually restricted as to withdrawal.
Total interest cost incurred and charged to expense for the years ended March 31, 2004, 2003 and 2002 amounted to ¥1,217 mil-
lion ($11,481 thousand), ¥1,430 million and ¥1,291 million, respectively.
7. LEASES
The Companies have operating lease agreements primarily involving offices and equipment for varying periods. Leases that expire gen-
erally are expected to be renewed or replaced by other leases. At March 31, 2004, future minimum rental payments applicable to non-
cancelable leases having initial or remaining non-cancelable lease terms in excess of one year were as follows:
2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2006. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$283,358
98,150
840
651
—
6,085
$389,084
Thousands of
U.S. dollars
¥30,036
10,404
89
69
—
645
¥41,243
Millions of yen
Years ending March 31
2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2006. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 24,434
22,509
20,811
18,632
14,585
147,632
$248,603
Thousands of
U.S. dollars
¥ 2,590
2,386
2,206
1,975
1,546
15,649
¥26,352
Millions of yen
Years ending March 31
Rental expense amounted to ¥11,059 million ($104,330 thousand), ¥12,818 million and ¥11,322 million for the years ended March
31, 2004, 2003 and 2002, respectively.
8. TERMINATION AND RETIREMENT BENEFITS
The Company and its domestic subsidiaries sponsor termination and retirement benefit plans which cover substantially all domestic
employees. Benefits are based on the employee’s years of service, with some plans considering compensation and certain other fac-
tors. If the termination is involuntary, the employee is usually entitled to greater payments than in the case of voluntary termination.
The Company and its domestic subsidiaries fund a portion of the obligations under these plans. The general funding policy is to con-
tribute amounts computed in accordance with actuarial methods acceptable under Japanese tax law. The Company and substantially
all domestic subsidiaries have a contributory termination and retirement plan which is interrelated with the Japanese government social
welfare program and consists of a substitutional potion requiring employee and employer contributions plus an additional portion estab-
lished by the employers.
The annual maturities of long-term debt outstanding at March 31, 2004 were as follows: